Which of the Following Does Net Capital Outflow Measure

question 50

Multiple Choice

Which of the following does net capital outflow measure?

• A)foreign assets held by domestic residents minus domestic assets held by foreign residents
• B)the imbalance between the amount of domestic assets bought by domestic residents and the amount of foreign assets bought by foreigners
• C)the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners
• D)domestic assets held by foreigners minus foreign assets held by domestic residents

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Definitions:

MR

Marginal Revenue, which is the extra revenue that an organization receives from selling one more unit of a product.

Nominal Wage Rate

The amount of money paid per hour, day, or other unit of work, without adjusting for inflation.

Profit-maximizing

The method or approach of modifying production and sales to maximize profits.

Output

The total amount of goods or services produced by a company, industry, or economy.